Addresses holding 0.1% of BTC supply see strong net revenues in Q3 2023: Report

According to the Q3 2023 on-chain crypto market data firm IntoTheBlock's report, addresses holding at least 0.1% of the bitcoin (BTC) supply showed strong net inflows during the third quarter of the year.

IntoTheBlock, these addresses recorded a one-day flow of $600 million despite BTC dropping to $25,000, showing that they are quietly bullish.

Strong net inflows in Q3

Following a one-day inflow of $600 million in BTC, the same wallets experienced three other net inflows of more than $400 million, indicating a quiet build of strong demand.

In particular, these high net flows occurred when centralized exchanges were outsourced. IntoTheBlock believes that its wallets are organic buyers and not just addresses from centralized trading platforms.

However, holders' patience may be tested if the United States Securities and Exchange Commission (SEC) delays its decision on applications for Spot Bitcoin Exchange Traded Funds (ETFs), reports IntoTheBlock.

While BTC saw a significant amount of net inflows across addresses with at least 0.1 percent of the supply, the asset recorded a negligible net inflow of $90 million from the central exchange during the quarter. The figure for Q2 2023 is $140 million higher than Q3 2022, which is $1.3 billion less.

It is worth noting that Bitcoin payments for Q3 2023 have dropped by more than 71% compared to Q2, as BRC-20 tokens and Ordinals protocol introduce a way to trade meme tokens on the network. However, gas fees on the Bitcoin network have more than doubled since Q3 2022, indicating that Ordinals has brought continued interest to the ecosystem.

Long-term Bitcoin holders are on the rise.

Meanwhile, metrics on the chain show that the number of long-term BTC holders is growing and the growth is comparable to the cycle seen in 2017, which led to a significant price appreciation of the crypto asset in 2020.

CryptoPotato reports that the growth in long-term BTC holders will have significant consequences in 2024, which will be the beginning of the rising bull cycle in 2025. Considering that only two million bitcoins remain to be mined, analysts believe that the crypto community can be. Being in a supply shock that has a huge impact on the price of Bitcoin.